
Distribution – the process by which products and services reach the customer and where Marketing meets Sales – is a critical element of business strategy.
How close can we get to the customer? To the actual end user? Is a question frequently asked in the boardroom.
A perfect example of getting close is vehicle finance companies distributing via dealerships. Most cars are purchased with an element of finance, typically offered as part of the overall deal. This is a perfect model for the finance company. The customer is buying, has a clearly identified immediate need and the car salesman is selling the finance for them, including handling the front end of the administration process.
This model is not exclusive to vehicle purchases – think of interest free credit on white goods offered at the point of sale and now BNPL (buy now pay later) which is the result of new finance companies spotting the opportunity to fund smaller ticket purchases both online and via retail outlets over shorter timeframes.
Pre-COVID, I started referring to these types of set ups as viral sales models and I firmly believe they are the way forward, but the possibilities are not limited to dealers and retailers, there’s also intermediaries. Think of mortgage brokers as an example, adding value in the space between the real estate agent, the purchaser and the financier, selling mortgages for lenders.
So where are the new opportunities to create viral sales models? Which industries are ripe for distribution disruption? Whose distribution strategy is kicking goals right now? https://93twenty.com.au/sales/